You need to be familiar with WHICH news affects the market you are trading, and HOW and WHEN that market is affected.
Watch this video, where I explain it in detail.
Whether you trade futures, stock, forex, your trades will be affected by news. You need to be careful when news comes out that your market will react strongly to – your trading platform can become overwhelmed with data and you won’t be able to keep up. For example, here is a chart showing the behavior of the ES emini when the FOMC announcement occurs.
News Affects Trading, No Doubt About It
If you are day trading, you should check early what news will be coming out and how likely it is to have an effect on the markets. A site you can go to for both of these is
If you see a red star, you will know that that news is likely to make the markets move.
A gold star is much less likely to move the markets, and a dot or no dot or star is news the markets will likely ignore.
Watch your chart(s) carefully during these news events for many days and weeks, and you will begin to see the pattern of reaction to news. There is nothing like personal experience to teach you what is likely to happen. Take some simulated trades during the big news reactions, just to see what happens on your platform. Then, when and if you take actual trades during big news events, don’t be surprised if real fills are not really the same as simulated fills!
I myself just stay away from daytrading during news. It is too risky for me.